Coping with Losses

How do you guys do it? I think I might be having trouble with it. Luckily, I'm lowering my risk on the trade immediately after a loss. This is what is keeping me from losing all my money.

i mean, you will get a lot of answers

what makes most sense is to bet small with your own money, and bet large with house money

you lose house money, it doesn't hurt as much (psychologically)

One of the first rules of money management, the one often over looked, is making sure you're properly funded. More than most, if your account can't stand to take a few bad hits in the market, then you are most likely under-funded.

If so, better to grow slowly, trade the smallest lot available ... work with no more than 100:1 margin, and to be honest, that's too much margin if under-funded.

Don't neglect your stops as well. Always place some type of stop on all open orders, whether it be, trailing or hard stops. For myself, it didn't take me long to cope with losses. I soon realized the most important aspect of being a trader was not how many trades I won, but how I limited my losses ... holding on to my available equity as long as possible. Any new monies I made, holding on too it should be priority-number-one.

thank you for your input. I currently use 1:10 margin. My hard stop is 50 pips and Im pretty good about it. However, I make a loss, and my MM goes out the window. I try to "make back" my money by betting higher. I know this is fatal, but in that moment, it doesn't cross my mind. I have a >10k account, and I dont want to go broke. Is there anything you guys suggest I do to stop me from betting more if Im losing?

yeah

keep your bets tiny until you build your account up at least 10 or 20 percent

then escalate bets. otherwise, you are incurring too much risk on your own cash.

if your account falls back to your original starting balance, reduce the size of the bets.

I agree with tdion, keep your trades small, though it sounds like you're using the Martingale system?

not martingale. I think that is the double or nothing system? I risk about 5% per trade max. I use pure PA, and I have a set of rules that I follow. Half of my account is house money. So, right now I'm pretty deep in the green. What is you thought process like right when you lose a trade?

the sooner you accept losses are a part of trading, the sooner you can move forward.

if you can't accept it, you will trade haphazardly because you will be rocked by a loss. it's like having a glass jaw in boxing.

If you hold yourself to a 100% Profitable Trade Expectation you will be crushed. Period.

Therefore, If you understand that you will make some wrong decisions, what's to say that the Next One may not be "A Wrong One." With that in mind, Enter All Your Trades knowing that {hard to admit} You may be wrong.

Govern Your Funds Accordingly.

B

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